UPDATE: Key FX option expiries are set for October 20, 2023, at 10 AM (New York), impacting the USD/JPY and USD/CAD currency pairs. Market participants are closely monitoring these developments as they could significantly affect trading dynamics today.
The first notable expiry is for USD/JPY, hovering near the critical 150.00 level. After a daily break below this threshold last Friday, the pair faces fresh political developments in Japan that could influence its trajectory. Reports indicate that the LDP (Liberal Democratic Party) is poised to partner with Nippon Ishin, paving the way for Takaichi to potentially become Japan’s next Prime Minister. While this coalition may reduce political uncertainty, Takaichi’s reputation as a fiscal dove could pressure the yen, particularly as the market seeks stability.
Market analysts suggest that the expiries around the 150.00 mark may help curb any downside risk in USD/JPY today. However, with the 100-hour moving average positioned around 151.00, upside movement could also be limited. Traders are advised to keep a close watch on these levels as they could dictate market sentiment.
In parallel, a notable expiry exists for USD/CAD at the 1.4000 level. While this expiry does not align with any significant technical indicators, it could restrict further downward price movements for the pair, especially after a recent drift lower since the end of last week.
As the clock ticks down to the expiry times, traders are urged to stay informed and adjust their strategies accordingly. The market’s response to these expiries could set the tone for the remainder of the trading session.
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